Featured Product

    SRB Announces Single Resolution Fund on Way to Reach Target

    July 14, 2020

    SRB announced that the Single Resolution Fund received an increase of EUR 9 billion from 3,066 institutions for 2020, bringing the total amount in the Fund to approximately EUR 42 billion. The target size of the Single Resolution Fund has been set at 1% of covered deposits by the end of 2023. The Fund will end up at close to EUR 70 billion, taking into account the current annual growth in covered deposits. According to the SRB Chair Elke König, the Fund is being "steadily built up" and is on its way to reach the target.

    The Single Resolution Fund was established by the Single Resolution Mechanism Regulation (Regulation 806/2014 or SRM Regulation). Where necessary, the Fund may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. The Single Resolution Fund has grown to EUR 42 billion after the latest round of transfers and can be used to support the effective resolution of a failing bank, if needed. However, the Fund shall not be used to absorb the losses of an institution or to recapitalize an institution. The Fund is composed of contributions from credit institutions and certain investment firms in the 19 participating member states within the Banking Union. These contributions are calculated according to EU law and collected via the national resolution authorities. 

    Within the resolution scheme, the Single Resolution Fund may be used only to the extent necessary to ensure the effective application of the resolution tools, as last resort, in particular:

    • To guarantee the assets or the liabilities of the institution under resolution
    • To make loans to or to purchase assets of the institution under resolution
    • To make contributions to a bridge institution and an asset management vehicle
    • To make a contribution to the institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions
    • To pay compensation to shareholders or creditors who incurred greater losses than under normal insolvency proceedings

     

    Related Links

    Keywords: Europe, EU, Banking, Single Resolution Fund, Resolution Framework, SRMR, Banking Union, SRB

    Related Articles
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5635